Introduction:
Tiger Pacific Capital’s recent investment of $25 million in B9 Beverages, the parent company of Bira 91 beer and The Beer Cafe chain, is a significant step forward as the company prepares for its IPO.
Investment Details:
The acquisition of nearly 4% stake by Tiger Pacific Capital demonstrates a strong endorsement of B9 Beverages’ growth potential. This investment, ahead of the anticipated IPO, signals confidence in Bira 91’s market position and future prospects.
Ankur Jain’s Perspective:
Ankur Jain, CEO of B9 Beverages, views Tiger Pacific Capital’s involvement as instrumental in leveraging strategic partnerships and financial support across different regions. This infusion of capital will enable B9 Beverages to capitalize on emerging opportunities and strengthen its market presence.
Road to IPO:
The investment from Tiger Pacific Capital aligns with B9 Beverages’ roadmap towards its IPO. While specific details about the IPO remain undisclosed, the investment serves to fortify B9 Beverages’ financial foundation and broaden its investor base.
Bira’s Fundraising Achievement:
The $25 million investment by Tiger Pacific Capital translates to approximately a 4% stake in B9 Beverages, valuing Bira 91 at around $625 million. This significant infusion strengthens Bira 91’s financial standing as it prepares for its IPO.
Recent Developments:
Apart from this investment, B9 Beverages has witnessed significant investments totaling $130 million over the past 1.5 years, including contributions from companies like:
- Kirin Holdings : Kirin Holdings, a Japanese beverages group, invested $25 million in B9 Beverages, increasing its stake to over 20%. With a valuation of $600 million, this showed confidence in B9 Beverages’ growth. Kirin’s investment fueled expansion plans, capitalizing on double-digit growth in India’s beer market. This reflected investor confidence and signaled a positive outlook for B9 Beverages amidst competition.
- MUFG Bank: B9 Beverages received a $10 million investment from MUFG Bank on March 2023. The funds was used for production expansion and innovation. CEO Ankur Jain emphasized the importance of scaling the business for a potential IPO, with Jain aiming for global expansion and maintaining Bira 91’s beer-centric portfolio amidst inflationary pressures.
- Sequoia Capital and Sofina: B9 Beverages, secured $20 million in bridge financing from Sequoia Capital and Sofina as part of a $30 million pre-Series C equity financing round. CEO Ankur Jain aimed to expand business in India’s premium beer segment, with plans to achieve double-digit market share in several states in 2020. The financing round began in May last year, with Sixth Sense Ventures joining as an investor.
Recent acquisitions, such as The Beer Cafe and Kamakhya Beer & Bottling, further enhance B9 Beverages’ portfolio and market position.
Valuation Understanding:
Current Investment from Tiger Pacific capital was at : ₹ 5187 Crores
Current outstanding shares of BIRA : 8 crores ( approx. fig on a fully diluted basis)
Current Share Price : 600/share
Implied Market cap: 600*8 Cr shares : 4800 Crores
The current round seems to be at a ~8% discount to the price in the unlisted/ Pre IPO markets.
Comment: Tiger Pacific Capital’s substantial investment of approximately ₹5,187 crores in BIRA, a notable player in the craft beer industry, underscores significant financial activity in the market. With around 8 crores outstanding shares valued at ₹600 each, BIRA’s implied market capitalization stands at roughly ₹4,800 crores. Notably, Tiger Pacific Capital’s investment is approximately 8% lower than the price in the unlisted/Pre IPO markets, suggesting advantageous terms for investors. This overview encapsulates key financial dynamics and valuation insights surrounding BIRA’s recent investment round.
Currently Bira 91 Unlisted Shares is trading at around Rs. 610/share. CLICK HERE to Invest.
Conclusion:
With Tiger Pacific Capital’s backing, Bira 91 is poised for success as it charts its course towards an IPO. The investment underscores the company’s appeal to investors and its potential to make a mark in the Indian beverage industry. As B9 Beverages continues to expand its portfolio and strengthen its market presence, the stage is set for an exciting journey ahead.
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